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As we move into the second quarter of 2022, solar equipment costs are rising again, likely for the second year in a row of overall price increases (up to 18% for solar in 2021). In an industry where year-over-year price increases are largely unheard of, current events are forcing solar installers and developers to make difficult business choices.
We know that many of our customers have had to postpone or cancel solar projects due to a lack of available inventory, or in the hope that prices will stabilize in the future. Others were forced to pass the price increase on to their customers.
Unfortunately, this is all happening at a time when we need solar power more than ever - with the consequences of global warming at the forefront of current events and traditional fossil fuel supply chains coming under unprecedented pressure. You could say it's a perfect storm.
A dismal picture heading into the second quarter of 2022
As we move into the second quarter of 2022, solar equipment costs are rising again, likely for the second year in a row of overall price increases (up to 18% for solar in 2021). In an industry where year-over-year price increases are largely unheard of, current events are forcing solar installers and developers to make difficult business choices.
We know that many of our customers have had to postpone or cancel solar projects due to a lack of available inventory, or in the hope that prices will stabilize in the future. Others were forced to pass the price increase on to their customers.
Unfortunately, this is all happening at a time when we need solar power more than ever - with the consequences of global warming at the forefront of current events and traditional fossil fuel supply chains coming under unprecedented pressure. You could say it's a perfect storm.
Sohigh Solar is here to help
While we don't have a magic wand to wave around supply chain constraints, we have a team of solar experts dedicated to helping you navigate the solar roller coaster, even when it looks like it's going off the rails. Our number one goal has always been to make your business run more smoothly, and we're more committed to that now than ever.
Coming into the second quarter of 2023, Soigh Solar has prepared inventories of 210mm cell solar panels, inverters, controllers, etc., which can be shipped at any time, while stocks last.
The Future of the Solar Supply Chain
When it comes to the future of solar energy, perhaps the only two things we are sure of are.
More recently, there have been arguments for increasing domestic solar production, which would reduce our reliance on international supply chains. However, current levels of solar demand also require reliance on international production, at least for the foreseeable future.
Longer term, as technology improves and more domestic and international manufacturing capacity is added, solar prices are likely to return to their established pattern of falling regularly. However, market conditions remain subject to unpredictable global current events.
The price and availability of solar modules and other equipment needed for solar projects will continue to be affected by factors such as global shipping costs (currently driven by the war in Ukraine), factory shutdowns (China is a major producer of solar modules), restricted port traffic, and other factors that we cannot The influence of controlled factors.
Sohigh Solar's experts are dedicated to keeping an eye on solar industry developments, especially supply chain fluctuations, and strive to provide the best options to keep your solar business on target. Our unique position allows us to optimize your shipping options and costs in any market, which is especially valuable with today's shipping challenges. See how our logistics and other solar optimization services can help your business navigate current market conditions.
Maybe you're easily discouraged by the news and how it can affect your business, but at Sohigh Solar, we know there's always a way to go. No matter what happens in the world, we believe solar power remains the best answer for a sustainable, energy independent future. We want to see the rate of new solar installations continue to increase, and we're here to help you make that happen.
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